GST Classification of Rubber Rings in Irrigation Systems: AAR Clarifies 5% Tax Benefit Under HSN 8424

Arti Pitaliya from M/s Shree Rubber and Polymers (applicant) has filed an application seeking Rajasthan Authority for Advance Ruling (AAR) Goods and Services Tax (GST), clarifying some questions under Clause(s) of Section 97(2) of the CGST/SGST Act, 2017.

The applicant holds a GSTIN 08BUWPP5130P1ZO and is located in Laxmi Nagar, Niwaru Road, Jaipur-302012, Rajasthan. The personal hearing on the present case was held on December 18, 2026, and the final ruling was given on February 26, 2027.

The applicant, through the current advance ruling, wanted to clarify how rubber rings should be classified under the GST law and also if they fall under Entry No. 195B of Schedule II of Notification No. 01/2017 dated June 28, 2017, updated by Notification No. 06/2018 dated January 25, 2018. These rubbers are primarily used in sprinkler irrigation systems or drip irrigation systems.

The advance ruling is sought for various items: those individually used in sprinklers and drip irrigation systems and also those used as a part of the complete system.

Question Raised Before AAR Rajasthan:

Below is the question asked by the applicant seeking the Rajasthan Authority for Advance Ruling (AAR) Goods and Services Tax (GST):

“Question: Whether parts of a sprinkler system or drip irrigation system sold by us, like the rubber rings, etc., exclusively meant for use in sprinklers and drip irrigation systems but sold in isolation as parts and not as a complete system, are classified under the heading 8424, the tax rate applicable on such components/parts when sold separately and not as a part of the sprinkler/drip as ‘Sprinklers; drip irrigation system including laterals; mechanical sprayers. Rubber rings are classified under HSN 8424, and the applicable tax rate is 5%, details as per the notification No. 1/2017-Central Tax (Rate), dated 28-6-2017. The entry No. 195B was inserted vide notification No. 6/2018-Central Tax (Rate), dated 25th January 2018. It is pertinent to note that these items are designed and shaped so that they can be used only in sprinkler/drip irrigation equipment and have no other use. What shall be the GST rate on such products falling under the system HSN 8424, attracting a CGST of 2.5% and an SGST of 2.5%, or not?”

Answer Given by AAR Rajasthan:

Below is the ruling given by the Rajasthan AAR to the aforementioned question asked by the applicant:

Answer: The Rajasthan Authority for Advance Ruling (AAR) has clarified that if the rubber rings made by the applicant are developed using hard rubber and are completely utilised for the purpose of irrigation, in that case it will be Entry No. 195B of Schedule II of Notification No. 01/2017 dated June 28, 2017, updated by Notification No. 06/2018 dated January 25, 2018, attracting GST at 5% (2.5% CGST and 2.5% SGST), classified under HSN 8424. However, it will not attract concessional duty if it is either made of something other than hard rubber or used for general purposes.